ecommerce customer-centric how and why to make your...
TRANSCRIPT
How and why to make your Magento eCommerce Customer-Centric
1. The maturity phases of an eCommerce 2. RFM Model3. Retention hacks4. Let’s get to action
> Serial entrepreneur from Bucharest, Romania> Passionate about psychology, data, relations & change
Valentin RaduCEO & founder Omniconvert
WHAT DO WE REMEMBER
?
My life tests:> 17 different jobs> 4 companies> 30 relationships> raising 2 kids> (Thank God!) - having one wife
eCommerce is not a one-night stand
is about habit-forming
Being data-driven
#GetUplift
Not acting on old assumptions
Maturity levelsof an eCommerce
0-1 years
Focuson traffic
1-2 years
Focuson orders
>2 years
Focuson customers
>10 years
Focuson
survival/innovation
“After 24 months, 50% of the revenue is generated by returning customers”
Intr-un e-commerce matur...
The average eCommerce retention rate
Is 30%
If you have an eCommerce with a YoY growth of 50% for new customers
60% retention rate
40% retention rate
20% retention rate10% retention rate
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Ann
ual r
even
ue
After 6 years, 90% of the revenue is generated by returning customers,
at a 60% retention rate
Customer-centricity phases
Awareness Research Strategy Execution
Business Intelligence(NPS, RFM segmentation, Lifetime Value vs Customer Acquisition cost)
Budget(Retention programs, operations team, new technologies)
Team
Technology(to track, report,, personalize the experience)
Business Intelligence Platform
Business Analyst
Personalization BI Tool Survey tools
Data Analyst Data AnalystDevs, UX, Customer Support
Low Low Medium High
Awareness phase
1
https://goo.gl/8Ttyv9
Monitor the right KPI’s
1
23
4
5Set strategicgoals
StrategicInitiatives
Prioritise
Execute & repeat
#GetUplift
Strategic initiative
OS 1: increase
NPS to 75
OS2:Decrease
return rate to 10%
OS 3: Increase
LTV to $3400
OS 4: Increase
conversion rate to 1.4%
OS 5: Increase retention
rate to 65%Total
impact score
Personalized thank-you letter after the first order 5 1 3 0 4 13
PPC Hacking 0 0 0 2 0 4
Build / hire a growth team 3 2 2 3 3 16
Retention optimization audit 3 1 2 3 3 10
Activate a new payment method 0 0 0 2 2 4
Find out the buyer persona with on site surveys 1 0 1 3 3 8
Cohort Analysis (how customers are churning through time)
Retention Rate impact
https://goo.gl/8Ttyv9
Retention Rate Optimization methodology
2
Build the RFM model
Analyze the impact(NPS, Retention, LTV)
Don’t stop until you have 100 ideas
Understand your Buyer Persona: surveys for each
important segment
Hygiene step:Treat the pains
(product / services)
Start brainstorming based on your budget
Cosmetics step:Do the math - how much can you invest to keep a customer vs to acquire a
new one?
Execute
Restart
RFM Segmentation > Buyer Persona
3
Recency - How recent is the last order?
Frequency - How often that customer bought?
Monetary Value - What is the total revenue you got from the customer?
Customer Recency Frequency Monetary Value RFM
John Doe 3 4 2 9
Joan Doe 2 3 3 8
Geena Doe 4 1 1 6
Who’s your Buyer Persona? Why are they (not) buying anymore?
How many of your customers are placing the 2nd order?
Why?
From the ones which are not ordering anymore, how many are not placing an order because of
> your products From which categories? Bad quality / false expectations?
> your servicesDelivery time, experience, return policy, packaging, etc?
How to do it?
> On-site surveys> Post-order emails
> Post-order remarketing FB ads (with proper capping)
How can we use an RFM model?
Identify the best customers
Proper retention program
Higher retention rate
Higher revenue
Data-driven growth
Under-promise, over-deliveryOn every touch-point:
personalization
4
Hand-written thank-you letter
Surprise gift
That’s for you to understand how happy we are that you’ve placed your second order on our website.
Courtesy call after the 1st order
A welcome-back surprise according to recency score
Your homework
1. Emotions will build relations2. You should make someone responsible for retention3. Focus on habit-forming4. You can’t grow retention (and anything else) if you don’t
monitor it. What you don’t measure, doesn’t count5. Be good
A/B testing - wysiwyg editor, split
URL testing, multi-page testing
Actionable Surveys - Cart abandonment
surveys with real time objection treatment,
Net Promoter Score, Buyer Persona
identification
Web Personalization - change the visitor's experience
in real time using on-page variables based on Customer
Lifetime Value, Geo location, behaviour, Weather
conditions, etc.
Interactions - pop-ups, bars, widgets which can be
triggered on load, on scroll, on the exit intent of the
visitors
Business Insights - Track & monitor the
most important eCommerce KPIs, Llifetime
Value, RFM segment, cohort analysis, ROI,
YoY growth
Proud to work with:
Valentin Radu
www.omniconvert.com
https://uk.linkedin.com/in/valentinradu
Thank you!